TAX AND NI ON SALARIES 2020/21
The table below shows the position for director shareholders taking a low salary from their company to
minimise tax and NI liabilities for 2020/21
| Allowances and Thresholds | Directors annual salary | Directors annual salary | Directors annual salary | |
| Personal allowance | £12,500 | £12,500 | £9,500 | £8,788 |
| NI primary threshold £9,500 | £9,500 | |||
| NI secondary threshold £8,788 | £8,788 | |||
| employment allowance £3,000 | £3,000 | |||
| Director’s tax payable | – | – | – | |
| Director’s NI payable | £360 | – | – | |
| Employers’ NI payable | £512 | £98 | – | |
| Director’s net pay | £12,140 | £9,500 | £8,788 | |
| Net cost of salary to company before tax relief if the employment allowance applies | £12,500 | £9,500 | £8,788 | |
| Net cost of salary to company before tax relief if the employment allowance does not apply | £13,012 | £9,598 | £8,788 |
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